Rule: IRC Section 221 allows the deduction of student loan interest (above-the-line for AGI) paid on qualified education loans up to a maximum of $2,500 for the tax year. There is a phase-out for the deduction in 2014, and there are other minor restrictions, such as a married couple must file joint returns to take the deduction. Choice "B" is correct. There is no limitation of the number of years that the interest may be deducted, other than that the interest may be deducted only when paid.Choices "a", "d", and "c" are incorrect, based on the above rule.
